(1)At the time of submission of application, the applicant shall submit to the Commission the applicant’s earnings history, balance sheet, cash flow, funding arrangement and risk management strategy which will demonstrate that the applicant has met the net-worth requirement as per sub-regulation (2) of this Regulations.
(2) The net worth requirement of the electricity trader/applicant at any time shall not be less than the following amounts.
S.
No.
Category of the Trading License Volume of Electricity proposed to be traded per financial year Net worth (Rs. in crores)
1. A Upto and including 50 MU 1.0
2. B 51 MU to 100 MU 2.0
3. C 101 MU to 200 MU 4.0
4. D 201 MU to 300 MU 6.0
5. E 301 MU to 400 MU 8.0
6. F 401 MU to 500 MU 10.0
7. G Above 500 MU 10.0 plus Rs. 2 lacs for each additional MU above 500 MU Compendium of HPERC Regulations, March 2021 3
Provided that the licensee shall increase his net worth, if the volume of the trade moves from a lower category to a higher category and the change of category shall be decided based on the volume of electricity traded as on 31 st March of each year, and of which the licensee shall keep the Commission informed of his moving from one category to the other and subsequent changes in the net worth.
(3) The applicant shall demonstrate his net-worth duly certified by an auditor to the satisfaction of the Commission at the time of application.